- The NEAR price cut could drop to $1,584.
- NEAR noted a decline in weighted sentiment, volume and development activity.
- A candle closing above 61.8% Fibonacci level (1.678 USD) will negate this bearish prediction.
near Protocol (NEAR), the peerless blockchain platform, has not been offering many gains to investors who hold its native token (NEAR) lately. However, there might be a selling opportunity at $1,584 if the downtrend for NEAR continues for a day or two.
Technical indicators and on-chain measures indicate that the downtrend for NEAR may continue. Should the NEAR bears hold, investors could further short the $1,584 level.
When On Immediate Support At 50% Fibonacci Level ($1,631): Will Bears Rally Lower?
Bears could push the NEAR price lower based on the three major technical indicators on the daily chart.
First, the Relative Strength Index (RSI) was at 35, holding in a range bordering on the oversold territory. This indicates that the buying pressure has eased as the sellers entered.
Secondly, the OBV showed a decrease, which indicates a decrease in the trading volume. This indicates that the buying pressure could drop further, giving the sellers additional leverage.
Third and finally, the Directional Movement Index (DMI) showed that sellers were leading the market at the time of writing. The red line (sellers) was at 27, above 25, indicating that the sellers had a significant influence in the market.
Taken together, these indicators confirm that the selling pressure is strong enough to push close to the previous support at 38.2% Fibonacci level (1,584 USD).
However, an intraday candle closing above 61.8% Fibonacci retracement level (1.678 USD) will invalidate the bearish expectations mentioned above.
Emotions and developmental activity declined at NEAR
We noticed that the development activity of the NEAR protocol directly affected its initial token price. At press time, the blockchain platform’s development activity has decreased, which has led to a drop in the price of the token. As such, a continued decline in development activity is likely to drive the price lower.
In addition, volume and sentiment declined along with lower prices, which indicates an easing of buying pressures as investors turn bearish on the token. Therefore the downtrend of NEAR may continue for a few days before a price reversal provides short selling opportunities.
However, a bullish sentiment on NEAR will lead to a price reversal, spoiling the party for sellers and invalidating the above expectations.